March 5 (Reuters) - Intel ( INTC ) won the dismissal of

a shareholder lawsuit accusing the chipmaker of fraudulently

concealing problems in its foundry business, leading to job cuts

and a dividend suspension that wiped out more than $32 billion

of market value in one day.

In a decision made public on Tuesday, U.S. District Judge

Trina Thompson in San Francisco rejected claims that Intel ( INTC ) took

too long to reveal a $7 billion fiscal 2023 operating loss

linked to its business of making chips for outside customers.

Intel ( INTC ) did not disclose the loss until last April, when it

made changes to how it reported financial results.

But the judge said shareholders incorrectly attributed the

$7 billion loss to the Intel Foundry Services business unit, and

were not misled into believing the unit's reported results

"included results for the entire Internal Foundry Model."

Thompson also said statements last March by former Chief

Executive Patrick Gelsinger that Intel ( INTC ) was enjoying "significant

traction" and "growing demand for our foundry offering" were not

misleading because they concerned specific customers rather than

overall revenue, which was falling.

Lawyers for the shareholders did not immediately respond on

Wednesday to a request for comment. Intel ( INTC ) declined to comment.

Thompson said the plaintiffs may file an amended complaint.

The lawsuit accused Intel ( INTC ) of inflating its stock price from

January 25 to August 1, 2024, when Intel ( INTC ) posted a $1.61 billion

quarterly loss and said it would lay off more than 15,000 people

and suspend its dividend to help save $10 billion in 2025.

Intel's ( INTC ) share price fell 26% the next day, resulting in the

$32 billion loss of market value.

The Santa Clara, California-based company has struggled to

fend off competition from rival chipmakers and benefit from

growth in artificial intelligence.

Its rivals include Nvidia ( NVDA ), Advanced Micro Devices ( AMD )

, Samsung Electronics ( SSNLF ) and Taiwan's TSMC

. Intel ( INTC ) ousted Gelsinger in December.

The case is In re Intel Corp Securities Litigation, U.S.

District Court, Northern District of California, No. 24-02683.